Star Videos, Incorporated, produces short musical videos for sale to retall outlets. The company's balance sheet accounts as of January 1 are given below. Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The company's predetermined overhead rate for the year ( $40 per camera-hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year: a. Film, costumes, and similar raw materlals purchased on account, $210,000. b. Film, costumes, and other raw materlals issued to production, $234,500 ( 85% of this materlal was considered direct to the videos in production, and the other 15% was considered indirect). c. Utility costs incurred (on account) In the production studio, $78,400. d. Depreclation recorded on the studio, cameras, and other equipment, $86,800. Three-fourths of this depreclation related to actual production of the videos, and the remainder related to equipment used in marketing and administration. e. Advertising expense Incurred (on account), $154,500. f. Salarles and wages pald in cash as follows: g. Prepald insurance explred during the year, $8,700(70% related to production of videos, and 30% related to marketing and administrative activitles). h. Miscellaneous marketing and administrative expenses incurred (on account), $11,450. I. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year. J. VIdeos that cost $554,000 to produce according to thelr job cost sheets were transferred to the finished videos warehouse to awalt sale and shipment. k. Sales for the year totaled $1,026,000 and were all on account. I. The total cost to produce the videos that were sold according to their job cost sheets was $598,230. m. Collections from customers during the year totaled $976,000. n. Payments to suppliers on account during the year, $592,000. o. Underapplled or overapplled overhead \$_? Required: 1. Prepare a transaction analysis that records all of the above transactions. 2. Prepare a schedule of cost of goods manufactured for the year. 3. Prepare a schedule of cost of goods sold for the year. 4. Prepare an Income statement for the year. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured for the year. Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods sold for the year. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year
